Zego, a leading insurer for delivery riders in the UK, has announced significant changes in its business strategy to focus on achieving profitability.
- Over 100 jobs have been cut as part of Zego’s shift away from the B2B market to concentrate on the B2C sector.
- The company aims for sustainable growth and profitability by 2025, after reducing its annual losses significantly.
- Zego was the UK’s first insurtech unicorn, achieving a valuation of $1.1 billion in 2021 following a major investment round.
- The strategic realignment reflects Zego’s efforts to position itself better for long-term success in the competitive insurance industry.
Zego, prominent in insuring the UK’s delivery riders, has taken decisive steps in reshaping its business model. The firm’s recent decision to cut more than 100 jobs marks a strategic pivot as it exits the B2B market entirely. This transition is aimed at enhancing focus on the B2C segment, expected to expedite the path to profitability.
The London-based company has reported a reduction in its workforce from 452 to 347 since 2022, aligning with its strategic realignment that prioritises long-term sustainability and growth. By reducing its losses by nearly half, Zego demonstrates a clear commitment to financial stability. The firm’s turnover saw a modest increase of 1.1% to £19.5 million for 2023, while pre-tax losses decreased by 44% to £36.2 million, facilitated by a reduction in staffing costs.
Zego’s historic milestone as the first insurtech unicorn in the UK was achieved in 2021, following a successful series C funding round that raised $150 million. The company’s valuation reached an impressive $1.1 billion. This financial accomplishment underlines Zego’s innovative approach in the insurance sector, leveraging advanced technology and data integration to offer comprehensive insurance products that save time and cost for businesses.
The transition away from the B2B market is a strategic manoeuvre to adapt to the evolving industry landscape. Zego’s leadership believes the consumer market presents more lucrative opportunities, setting a robust framework for achieving monthly profitability by early 2025. The firm’s adaptability illustrates the dynamic nature of the insurtech industry, where rapid shifts in strategy can lead to sustainable growth.
Zego’s strategic shift emphasises the company’s commitment to adapt and achieve profitability in a competitive market.
